Top-performing sustainable super funds (to June 2024)

Sustainable investment options have been on the menus of large superannuation funds for over 20 years, but they have become much more widely available recently.

This coincides with greater awareness of the impact of businesses on the environment and society, and younger members in particular seeking to align their values with their investments.

These days, most large funds have a sustainable option, and it most often falls into the Balanced category – described by SuperRatings as options with an allocation of 60–76% in growth assets such as shares and the remainder in defensive assets. 

Super funds that focus only on responsible investing often offer a range of options in other risk categories as well as sector-focused choices such as Australian shares, and some larger funds are also expanding their offerings. For example, both UniSuper and Aware have sustainable options in the Balanced and High Growth categories, and UniSuper also provides a standalone sustainable shares fund. 

Sustainable investment approaches are evolving

The most common approach when building sustainable options is to apply a negative screen to existing fund portfolios. Negative screens exclude companies with activities that can harm the environment or society, such as fossil fuels, weapons, gambling, alcohol and tobacco, and modern slavery.